All Forum Posts by: Sean Morrisey

Looking into investing in parking lots and garages from 25-70 stalls in the Chicagoland area.

Wondering, for those that have invested in individual deeded parking stalls, or lots/garages, the following : 

• What is the typical cash on cash return you see in your marketplace for investing in this asset class?
• What are typical challenges?
• What expenses do you build into your proforma model?
• Who manages your lot/garage?
• How do you automate your lot/garage/stall?

Thank you for your feedback!

My six plex runs about $2000/year. Retail value doesn't really factor into the equation.

Sounds risky without a large metro area to support it.

Buy multifamly, buy gold, buy bitcoin. Next recession will be a currency crisis.

I am in the process of trying to refinance a 16 unit multifamily building purchase in 03/2018 for $875K and believe it should appraise out for $1.4M given an increase in rents and decrease in expenses over the past 18 months.

Freddie Mac Small Balance Loan appears to be the best product to perform a cash-out refinance, but, wondering if anyone has recommendations (based upon experience) of what to ask a lender or due diligence to perform prior to the refinance to make sure things go smooth with underwriting?

Thanks to all!

15% or better 10-year IRR on Chicagoland multifamily (west suburbs), with a 9% or better ConC return. I invest solely primarily in small multifamily and look for opportunties in bumping up rents with minimal capital expediture.

Looking to research investing in real estate Notes and setting up a private fund. What are the best websites to research this information and to invest?

Syed -

I would recommend speaking with Lauren Spiedel with Exeter 1031 Services. Lauren can answer your 1031 questions. PM me and I'll send you her contact info.

On the flip side, it would sound most attractive to me to do the "cashout" refinance rather than 1031 exchange. Of course, this is relative to the townhomes cashflowing positive as rental properties. At the same time, you will be obtaining cash "tax free" with the refinance while continuing to build your portfolio and net worth.

Just my $0.50...

Gordon -

Yes, your thought process is correct. Leasehold rights would apply, so, you would want to review the lease expiration date.  Per state and lease, you would want to provide written notice (potentially notarized) that you will be no longer renewing lease within the appropriate time parameters.

Hope this helps!

Investment Info:

Single-family residence buy & hold investment in Aurora.

Purchase price: $62,000
Cash invested: $62,000

Purchased at a County Sheriff Sale for cash and at a discount. Refinanced out to get 80% cash back after closing on the property.

What made you interested in investing in this type of deal?

Discounted condo purchased at a Sheriff Sale!

How did you find this deal and how did you negotiate it?

Weekly county list of auctioned properties.

How did you finance this deal?

Cash buy but refinanced out in 60 days to get 75% cash back.

How did you add value to the deal?

New flooring, lighting...cosmetic rehab. I rent it at a discount at $1050/month.

What was the outcome?

Rented to this day!